Wawanesa Life has just indicated that they will have a premium rate increase on their Term to 100 and their Universal Life insurance policies. This rate increase is effective Feb. 21, 2012.
Wawanesa is about the last in a long line of life insurance companies who have raised their Term 100 and Level Universal Life insurance rates over the course of the past year. Low interest rate environment particularly on long term money and lower lapse rates (fewer people cancelling means higher claims) has led to the entire marketplace shifting these premiums higher.
Seeing this happening, I locked in some permanent insurance on my own life last year, as well as purchasing some life insurance for my kids. I believe we’ll never see rates as low as these again – Canadians have been fairly unique in having access to these low cost fully guaranteed life insurance premiums. My kids don’t care right now, but once they have families and mortgages and all the rest of it, I expect they’ll be pleased with how low cost their policies are – and for the rest of their lives too. (Note: Buying larger amounts of life insurance on my children is a personal decision because I see a high value on life insurance canadianviagras.com. It is not something I would normally recommend for my clients. From a strictly financial perspective this isn’t ideal. It really only makes sense considered as a gift/legacy value.).
I expect that this rush to raise rate isn’t over. Rumours abound that the companies who have raised their premiums may consider doing another substantial premium increase over the next year or so. However if you are considering a permanent life insurance policy, I would advise you to start shopping now before the next potential price increase.
The good news, term life insurance premiums seem to be locked in with no change up or down in site. As term life insurance premiums are shorter term and have high lapse rates, they don’t suffer as much from the ravages of long term low interest rate environments and are more subject to competition.